The net single premium for a $1,000 two-year term policy issued at age 39 is $136.81.
How to find the net single premium for a $1,000 two-year term policy issued at age 39?Insurance product being offered by ABC Life Insurance Company, which is a two-year term insurance policy funded by a single premium at the start of the first year.
To calculate the net single premium for a $1,000 two-year term policy issued at age 39, we need to consider the mortality table and the interest rate given in the text.
First, we need to calculate the probability of survival for each of the two years, using the mortality table. For a person aged 39, the probability of surviving the first year is:
Probability of surviving first year = Number alive at start of year / Number dying during the year
= 9,693,539 / 14,928
= 0.6226
Similarly, the probability of surviving the second year is:
Probability of surviving second year = Number alive at start of year + Number dying in first year / Number dying during the second year
= (9,693,539 - 14,928) / 15,970
= 0.6008
Next, we need to calculate the present value of the death benefit, which is $1,000. The death benefit is paid at the end of the year in which death occurs. Therefore, the present value of the death benefit at the end of the first year is:
Present value of death benefit at end of first year = $1,000 x 0.9479
= $947.90
The present value of the death benefit at the end of the second year is:
Present value of death benefit at end of second year = $1,000 x 0.8985
= $898.50
Finally, we need to calculate the net single premium, which is the present value of the expected death benefit minus the present value of the expected premiums. Since the policy is a two-year term policy, there is only one premium payment, which is made at the start of the first year. Therefore, the net single premium is:
Net single premium = Present value of expected death benefit - Present value of expected premiums
Present value of expected death benefit = Probability of dying in first year x Present value of death benefit at end of first year + Probability of dying in second year x Present value of death benefit at end of second year
= (1 - Probability of surviving first year) x $947.90 + (1 - Probability of surviving second year) x $898.50
= 0.3774 x $947.90 + 0.3992 x $898.50
= $635.34
Present value of expected premiums = $1,000 x (1 + 0.055) / 2 x 0.8985
= $498.53
Net single premium = $635.34 - $498.53
= $136.81
Therefore, the net single premium for a $1,000 two-year term policy issued at age 39 is $136.81.
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You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) Loan amount $923,000 Interest Rate 10.3% Life 50 years Date of Loan January 1, 2021 Use the installment method - not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. Do NOT put in minus signs, answer all positive numbers. What is the annual payment (round to the nearest $)?
The annual payment for the self-liquidating installment loan is approximately $95,248 (rounded to the nearest dollar).
let's find the annual payment for the self-liquidating installment loan. Here are the given details:
- Loan amount: $923,000
- Interest rate: 10.3%
- Loan term: 50 years
- Date of loan: January 1, 2021
- Installment method: Not straight line
To calculate the annual payment, we'll use the formula:
Annual payment = P × (r × (1 + r)^n) ÷ ((1 + r)^n - 1)
Where:
P = Loan amount
r = Interest rate per period (annual)
n = Number of periods (years)
Step 1: Convert the interest rate into a decimal by dividing it by 100.
10.3% ÷ 100 = 0.103
Step 2: Plug in the values into the formula.
Annual payment = $923,000 × (0.103 × (1 + 0.103)^50) ÷ ((1 + 0.103)^50 - 1)
Step 3: Calculate the values within the parentheses.
(1 + 0.103)^50 ≈ 470.386
Step 4: Substitute the calculated value back into the formula.
Annual payment = $923,000 × (0.103 × 470.386) ÷ (470.386 - 1)
Step 5: Calculate the numerator and the denominator.
Numerator = 0.103 × 470.386 ≈ 48.4498
Denominator = 470.386 - 1 ≈ 469.386
Step 6: Divide the numerator by the denominator and multiply it by the loan amount.
Annual payment = $923,000 × (48.4498 ÷ 469.386) ≈ $95,248.49
The annual payment for the self-liquidating installment loan is approximately $95,248 (rounded to the nearest dollar).
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hich of the following processes involves allocating cost estimates in order to establish a cost baseline for measuring project performance? question 1 options: a) cost estimating b) cost control c) activity cost estimating d) cost budgeting
Cost budgeting is the process that involves allocating cost estimates in order to establish a cost baseline for measuring project performance. Option D.
A financial plan and budget are created utilizing cost estimates through the process of cost budgeting. Professionals can manage their money with the help of a budget. When creating a cost budget, all anticipated expenses for a given time period are added together.
When developing a budget for new projects, project managers frequently employ cost estimation. Cost budgeting can be used by business leaders and financial experts to develop quarterly or annual budgets. To evaluate the success of their projects and spending patterns, these experts can use a cost budget.
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One possible response to managing negative risk it to accept the potential effects from the risk. True or False
The statement "one possible response to managing negative risk is to accept the potential effects of the risk" is true. Negative risk refers to the potential adverse consequences or losses that may arise from a particular event or decision.
These risks can impact various aspects of a project or organization, such as finances, reputation, or operations. Accepting the potential effects of a negative risk involves recognizing that the risk exists and making a conscious decision to tolerate the possible consequences.
This approach is often taken when the cost or effort required to mitigate the risk is too high or when the potential impact of the risk is deemed manageable. In these situations, it may be more feasible and cost-effective to accept the risk and focus on managing its consequences if it materializes, rather than attempting to prevent or minimize its occurrence.
To effectively accept and manage negative risks, it is crucial to establish a risk management process that includes identifying, assessing, and prioritizing potential risks. This involves evaluating the likelihood and impact of each risk and determining the appropriate response based on the organization's risk appetite and available resources.
Additionally, communication and monitoring of the accepted risks are essential to ensure that any changes in the risk landscape are identified and addressed promptly.
In conclusion, accepting the potential effects of a negative risk can be a valid and pragmatic response to managing such risks, especially when mitigation efforts are deemed impractical or cost-prohibitive. This approach requires careful assessment, prioritization, communication, and monitoring of risks to ensure that any adverse consequences are managed effectively.
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as a project manager, you're an expert at determining which tasks are most critical to the success of a project and helping team members identify and break down large tasks into smaller steps. what project management value does this represent?
The project management value that is represented by the ability to determine which tasks are most critical to the success of a project and helping team members identify and break down large tasks into smaller steps is "focus on results and outcomes."
By identifying critical tasks and breaking them down into smaller steps, the project manager is able to keep the focus on the end goal and ensure that team members are working towards achieving that goal. This involves understanding the project requirements, identifying the key success factors, and developing a plan to achieve those factors.
The project manager is also able to communicate this focus on results and outcomes to the team, providing clear direction and guidance on what needs to be achieved and how it will be achieved. By doing so, the team members are able to work more effectively towards the end goal, making progress and achieving success in a more efficient manner.
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Mr. and Mrs. Blayne are 80 years old and rely heavily on their investments to generate the income they need. They expect that they will have to cash in some savings to purchase a car at some point in the future. Considering the needs of the Blaynes, which investment do you think is the least appropriate?
Balanced Mutual Fund
Mortgage-backed securities
Government of Canada Bond
Principal Protected Note
Mortgage-backed securities would be the least appropriate investment for Mr. and Mrs. Blayne due to their higher risk level and potential instability in comparison to the other options mentioned.
Considering the needs of Mr. and Mrs. Blayne, who are 80 years old and rely on their investments for income, the least appropriate investment for them would be:
Mortgage-backed securities.
1. Balanced Mutual Fund: This type of investment offers a mix of stocks, bonds, and cash, which can provide both growth and income, making it suitable for retirees like the Blaynes.
2. Mortgage-backed securities: These securities are tied to mortgages and can carry a higher degree of risk, especially if the housing market faces challenges. Given the Blaynes' age and income needs, this option is the least appropriate for them.
3. Government of Canada Bond: This type of bond is issued by the Canadian government and is considered low-risk, providing stable income for the Blaynes.
4. Principal Protected Note: This investment guarantees the return of the initial investment at maturity, while also offering potential returns based on the performance of an underlying asset. This can be an appropriate choice for conservative investors like the Blaynes.
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If housing values rise nationwide, there will be an): A. decrease in wealth as consumers spend more income on mortgage payments.
B. increase in consumer spending at any given level of disposable income. C. decrease in aggregate expenditure. D. drop in investment spending.
If housing values rise nationwide, there will be an: B. increase in consumer spending at any given level of disposable income.
What is the reason for this phenomenon?
This is because the rise in housing values leads to an increase in wealth for homeowners, which can lead to higher consumer confidence and spending.
If housing values rise nationwide, homeowners' wealth increases. This leads to an increase in their perceived wealth and, as a result, they are more likely to spend more on other goods and services. This is because, with a higher home value, they have more equity and can borrow more money against their home's value, allowing them to have greater purchasing power. This increase in consumer spending will occur at any given level of disposable income and will lead to an increase in aggregate expenditure, which is the sum of all spending in the economy.
Option A is incorrect because if housing values rise, homeowners' equity increases, which means they are spending a smaller percentage of their income on mortgage payments, not a greater percentage.
Option C is incorrect because an increase in housing values would likely lead to an increase in aggregate expenditure, not a decrease.
Option D is incorrect because an increase in housing values would likely lead to an increase in investment spending, as real estate is a common form of investment.
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7. A country has the following rates of unemployment. 1. Cyclical = 5% 2. Frictional = 2% 3. Structural = 1% The Natural Rate of Unemployment is ... 3% O 1% 2% O 5%
The Natural Rate of Unemployment in this country is 3%.
1. Cyclical unemployment is 5%. This type of unemployment occurs due to fluctuations in the business cycle and is not part of the Natural Rate of Unemployment.
2. Frictional unemployment is 2%. This type of unemployment occurs when people are transitioning between jobs, entering the workforce, or searching for new opportunities.
3. Structural unemployment is 1%. This type of unemployment results from a mismatch between the skills of the workforce and the available job opportunities, often due to changes in technology or industry demands.
To find the Natural Rate of Unemployment, add the Frictional and Structural unemployment rates:
Natural Rate of Unemployment = Frictional Unemployment + Structural Unemployment
Natural Rate of Unemployment = 2% + 1%
Therefore, the Natural Rate of Unemployment in this country is 3%.
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The Natural Rate of Unemployment is the sum of the frictional and structural unemployment rates, which is 3% in this case. Therefore, the answer is 3%.
The Natural Rate of Unemployment refers to the rate of unemployment that exists when the labor market is in equilibrium and there are no cyclical fluctuations in the economy.
It is the sum of the frictional and structural unemployment rates in an economy. In the given scenario, the country's natural rate of unemployment would be 3%, which is the sum of the frictional rate of 2% and the structural rate of 1%.
The cyclical rate of 5% indicates that the economy is currently experiencing a downturn or recession, which is characterized by a higher-than-normal unemployment rate. As the economy recovers, the cyclical rate of unemployment should decrease and eventually return to the natural rate of 3%.
Therefore, the Natural Rate of Unemployment in this country is 3%.
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A case study in the chapter analyzed purchasing power party for several countries using the price of Big Macs. Here are data for a few mom countries
For each country, select the predicted exchange rate of the local currency per U.S. dollar. (Mint Recall that the u.. price of a Big Mac was $5.58) Country Price of a Big Mac Predicted Exchange Rate Actual Exchange Rate Costa Rica 2,290 colones 607 colones's Pakistan 460 rupees 139 rupees/ Thailand 119 bant 32 baht/s China 20.9 yuan 6.85 yuan/s New Zealand 6.20 NZS 1.48 NZ$$ According to purchasing power parity, the predicted exchange rate between the Pakistani rupee and the New Zealand dollar is Zealand dollar. However, the actual exchange rate is rupees per New Zealand dollar Grado It Now Save & Continue Continue without saving
Large Mac PPP is a colloquial statistic used to contrast the buying power of various currencies with the cost of a Big Mac at McDonald's. The Big Mac Index is another name for the Big Mac PPP. The cost of a Big Mac in that country's currency is used to compare currencies.
The Big Mac Index's purpose is what?To gauge the differences in consumer purchasing power between countries, the Big Mac Index was developed. The burger takes the place of the "basket of goods" that economists previously used to gauge variations in consumer pricing.
Which of the following keeps tabs on Big Mac prices globally?The Big Mac Index, a study conducted by The Economist, looks at the relative overvaluation or undervaluation of currencies using the relative cost of a Big Mac around the world.
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Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,185. The bonds may be called in 5 years at 109% of face value (Call price = $1,090).
a) What is the yield to maturity?
b) What is the yield to call if they are called in 5 years?
c) Which yield might investors expect to earn on these bonds? Why?
a) The yield to maturity is 9.09%. This is calculated by taking the present value of all the bond's future cash flows and subtracting the bond's current price.
b) The yield to call if the bonds are called in 5 years is 8.24%. This is calculated by taking the present value of the future cash flows up to the call date and subtracting the bond's current price.
c) Investors might expect to earn the yield to call, since the company has the option to call the bonds in 5 years, and the current call price is lower than the face value. If the company does not call the bonds, then the investors will earn the yield to maturity.
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a cell phone manufacturer wants to assemble a team to market a new cell phone across the country. a(n) group would be best for this purpose.
A cell phone manufacturer wants to assemble a team to market a new cell phone across the country. A cross-functional group would be best for this purpose.
A cross-functional team consists of members with diverse skill sets, backgrounds, and expertise, all working together towards a common goal. In this case, the goal is to market a new cell phone across the country.
By assembling a cross-functional team, the cell phone manufacturer can ensure that all aspects of the marketing campaign are effectively addressed. The team can include members from various departments such as marketing, sales, product development, and customer support. This diversity enables the team to develop a comprehensive marketing strategy that takes into account the unique strengths and challenges of the product, as well as the preferences and needs of the target audience.
The team can leverage the expertise of each member to create a cohesive, well-rounded approach to marketing the new cell phone. For instance, product developers can provide insights into the device's features, while marketing professionals can develop effective promotional campaigns. Sales representatives can provide input on the best distribution channels and strategies, and customer support can help address potential concerns from users.
By collaborating across departments and sharing knowledge, the cross-functional team can create a synergistic effect that allows them to achieve their goal of successfully marketing the new cell phone across the country. This approach also helps to improve communication, enhance decision-making, and foster innovation within the organization.
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lisa invests $5000 in a savings account with a fixed annual interest rate of 5% compounded quarterly. what will the account balance be after 10 years? (round to the nearest dollar)
The account balance will be $8,162 after 10 years.
Using the formula for compound interest, the balance after 10 years can be calculated as:
A = P * (1 + r/n)^(n*t)
A = the account balance after 10 years
P = the principal investment of $5000
r = the annual interest rate of 5% (expressed as a decimal)
n = the number of times the interest is compounded per year (quarterly compounding means n = 4)
t = the number of years (10 years in this case)
Plugging in the values:
A = 5000 * (1 + 0.05/4)^(4*10) = $8,162 (rounded to the nearest dollar)
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when you have been successful in generating competitive advantage with an it-dependent strategic initiative what must you, as a manager, do in order to try and maintain such advantage?
A company is considered to possess a competitive advantage if it can produce goods or services faster, more affordably, or both than just its competitors. In terms of sales or earnings, these elements give the producing unit an edge over competitors.
What exactly is a competitive edge?A management must develop strategies to consistently keep on top of the competitive edge by working to strengthen and update the barriers to erosion associated with their initiative in order to try to sustain such a lead.
According to Christiansen & Fahey (1984), Kay (1994), & Porter (1980, as quoted by Chacarbaghi and Lynch), competitive edge is the capacity to perform at a higher level than rivals within a single industry or market (1999, p. 45).
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By using the data of Company (A, B, C & D) having Market Price $ (50, 30, 80 & 10) and earning per share (30, 15, 40 & 5) respectively. Calculate the fair price and decided whether you sell or buy the stock?
The fair prices for companies A, B, C, and D are $50, $60, $80, and $20, respectively. Based on this, you should sell company D's stock and buy company B's stock.
To calculate the fair price, we use the Price-to-Earnings (P/E) ratio. First, find the average P/E ratio by dividing the market price by the earnings per share for each company, then find the mean.
Company A: 50/30 = 1.67
Company B: 30/15 = 2
Company C: 80/40 = 2
Company D: 10/5 = 2
The average P/E ratio is (1.67 + 2 + 2 + 2)/4 = 1.92.
Next, multiply the average P/E ratio by each company's earnings per share to find the fair price:
Company A: 1.92 x 30 = $57.6
Company B: 1.92 x 15 = $28.8
Company C: 1.92 x 40 = $76.8
Company D: 1.92 x 5 = $9.6
Comparing the fair prices with the market prices, we can see that company B's stock is undervalued (fair price $28.8 > market price $30) and company D's stock is overvalued (fair price $9.6 < market price $10). Therefore, you should sell company D's stock and buy company B's stock.
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16. an increase in aggregate supply could be caused by: group of answer choices businesses paying more for health insurance for their workers. an increase in oil prices. a drop in energy costs from cheaper natural gas. an increase in government purchases. g
An increase in aggregate supply could be caused by C: a drop in energy costs from cheaper natural gas.
Aggregate supply refers to the total amount of goods and services produced in an economy at a given price level. Factors that can increase aggregate supply include improvements in technology, increased productivity, and lower input costs, such as energy costs.
In this scenario, cheaper natural gas leads to a drop in energy costs for businesses. When energy costs decrease, businesses can produce goods and services at a lower cost, which allows them to increase their overall production. As a result, the aggregate supply in the economy rises.
Options A (businesses paying more for health insurance for their workers) and B (an increase in oil prices) would actually decrease aggregate supply, as they lead to higher production costs for businesses. Option D (an increase in government purchases) impacts aggregate demand rather than aggregate supply, as it represents a change in the total spending on goods and services in the economy. Therefore, the correct option is C.
The question was incomplete, Find the full content below:
16. an increase in aggregate supply could be caused by: group of answer choices
A. businesses paying more for health insurance for their workers.
B. an increase in oil prices.
C. a drop in energy costs from cheaper natural gas.
D. an increase in government purchases.
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in the fifth stage of the b2b buying process, ______ specification, the firm places its order with its preferred supplier(s).
In the fifth stage of the B2B buying process, called the "purchase specification," the firm places its order with its preferred supplier(s).
This stage involves finalizing the details of the order, such as quantity, pricing, and delivery terms, before confirming the purchase with the chosen supplier(s).
What is the purchase specification?
A detailed description of the acquisition is given in the specification. The specification's purpose. Any specification serves the dual aim of clearly describing the purchase process for purchasing staff and providing vendors with firm direction for minimum acceptable product or service requirements.
What kinds of buying requirements are there?
Functional, Performance and Technical specifications are the three most prevalent types.
Types of Purchases
Personal Purchases.Mercantile Purchasing.Industrial Purchasing.Institutionalized or government purchasing.To know more about purchase specifications:
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how did railroads and utility companies give the early forms of corporate public relations a bad name?
Railroads and utility companies were among the first industries to adopt public relations as a way to manage their public image and reputation. However, their early use of public relations tactics often gave the industry a bad name, as they were seen as manipulative and deceptive.
One reason for this was the way that railroads and utility companies used public relations to suppress criticism and opposition to their business example, railroads used public relations to undermine labor unions and discredit critics who spoke out against their treatment of workers. Utility companies used similar tactics to silence opposition to their monopoly power and efforts to block competition. Another reason that railroads and utility companies gave early corporate public relations a bad name was their use of propaganda and misinformation. For example, railroads used public relations to promote the myth of the "Westward expansion" and the idea that the railroad was essential to the growth of the American economy. Utility companies used similar tactics to promote the idea that they were providing essential public services, even as they engaged in unethical practices such as price gouging and environmental degradation.
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Railroads and utility companies played a significant role in shaping the early forms of corporate public relations, but they also contributed to the negative reputation of this practice.
In the late 19th and early 20th centuries, railroads and utility companies were some of the largest and most powerful corporations in the United States. They had a significant impact on the country's economy and infrastructure, and they were also frequently involved in controversial business practices such as price-fixing and monopolizing.
To maintain their power and control, railroads and utility companies employed a variety of public relations tactics that were often perceived as manipulative and dishonest. For example, they would use tactics such as yellow journalism, propaganda, and even bribery to shape public opinion and sway lawmakers.
These tactics ultimately gave corporate public relations a bad name, as the public began to view the practice as unethical and untrustworthy. Over time, however, the industry began to evolve and adopt more transparent and ethical practices.
Today, corporate public relations has come a long way from its early roots, with many companies recognizing the importance of honesty, transparency, and social responsibility in their communication strategies. While the industry still faces some skepticism and criticism, it continues to play a critical role in helping companies build and maintain positive relationships with their stakeholders.
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Estimate income growth based on:
Today, Time0, is year-end (YE): 2018
TICKER ABAB
P/E ttm 29.5
P/E forw 19.5
PEG 2.23
EPS0 2018 4.88
EPS 2017 3.78
Equity /Sh 40.67
Payout % 0.39
What is the long-term growth rate implied by the PEG ratio (typically a 5 year estimate)?
Group of answer choices
a. 0.0947
b. 0.0845
c. 0.0928
d. 0.0898
e. 0.0874
The long-term growth rate implied by the PEG ratio is 0.0845 (option b).
To find the long-term growth rate, divide the P/E ratio by the PEG ratio. In this case, the forward P/E ratio is 19.5 and the PEG ratio is 2.23. So, the growth rate can be calculated as follows:
1. Divide the forward P/E ratio by the PEG ratio: 19.5 / 2.23
2. The result is approximately 0.0845
Thus, the long-term growth rate implied by the PEG ratio is 0.0845, which is typically a 5-year estimate. This value can be used to help make investment decisions by comparing it to the growth rates of other companies in the same industry.
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what are the benefits of c.a.f.e. for starbucks, and its certified farmers, processors, and suppliers?
The benefits of this program are numerous, for Starbucks, the C.A.F.E. program helps to ensure a steady supply of high-quality coffee, and for certified farmers, processors, and suppliers, the C.A.F.E. program offers a range of benefits.
C.A.F.E. (Coffee and Farmer Equity) is a program developed by Starbucks to ensure that its coffee is ethically sourced and sustainably grown.
The benefits of this program are numerous for both Starbucks and its certified farmers, processors, and suppliers. For Starbucks, the C.A.F.E. program helps to ensure a steady supply of high-quality coffee.
By working directly with farmers and suppliers, Starbucks can guarantee that their coffee is grown using sustainable practices that protect the environment and the livelihoods of the farmers. This helps to maintain a consistent supply of coffee, which is important for a company that serves millions of customers every day.
For certified farmers, processors, and suppliers, the C.A.F.E. program offers a range of benefits. First and foremost, the program provides them with a steady market for their coffee. This helps to ensure that they receive fair prices for their products, which can help to improve their standard of living.
In addition to this, the C.A.F.E. program provides support and training to farmers and processors, helping them to improve their farming practices and increase their yields. This can help to increase their profits and make their businesses more sustainable over the long term.
Overall, the C.A.F.E. program is a win-win for both Starbucks and its certified farmers, processors, and suppliers. It helps to ensure that Starbucks has a steady supply of high-quality coffee, while also supporting the livelihoods of the farmers and processors who produce it.
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Suppose you want to buy a 20-year. $1,000 par value annual bond, with an annual coupon rate of 8%, and pays interest annually. If the bond has 15 years left to maturity and it is currently selling for $989, what is the yield-to-maturity of the bond? (Round your answer to two decimal point)
The answer is 8.27%.
To calculate the yield-to-maturity (YTM) of the bond, we need to use the formula:
P = C / (1 + r)^1 + C / (1 + r)^2 + ... + C / (1 + r)^n + F / (1 + r)^n
where P is the current market price of the bond, C is the annual coupon payment, F is the par value of the bond, n is the number of years until maturity, and r is the yield-to-maturity.
Plugging in the given values, we get:
989 = 80 / (1 + r)^1 + 80 / (1 + r)^2 + ... + 80 / (1 + r)^15 + 1000 / (1 + r)^15
Solving for r using a financial calculator or spreadsheet, we get a yield-to-maturity of 8.27% (rounded to two decimal points).
Therefore, the yield-to-maturity of the bond is 8.27%.
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1 A policy under which the firm pays dividends only after its capital investment needs are met, and while maintaining a constant debt/equity ratio, is called a __________________.
A) homemade dividend
B) clientele effect
C) residual dividend policy
D) constant dividend growth model
E) none of the above
The correct answer to the question is C) residual dividend policy. This policy dictates that a firm should prioritize its capital investment needs before paying out dividends to its shareholders.
The goal is to ensure that the company has sufficient funds to finance its growth and expansion plans while also maintaining a constant debt/equity ratio. Once the capital requirements are met, the remaining profits can be distributed to shareholders in the form of dividends.
This approach is beneficial as it allows firms to maintain financial flexibility and invest in future growth opportunities without sacrificing shareholder payouts.
The residual dividend policy is often used by mature companies with stable earnings and predictable cash flows. It is a popular method for companies to balance the interests of both their shareholders and their long-term growth strategy.
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Su- Lin is the CEO of a large shipping company, the company has been contacted to carry a large shipment of argyle diamonds from the Port of Darwin to the Port of Melbourne. The diamonds are valued at $10 million.
Su-Lin asks Sarah to ensure that there is a contract for marine insurance entered into for the diamonds and to ensure that the insurance covers the risk of piracy.
Sarah phones Marine Insurance Co. Pty Ltd and discusses with Steven the proposed coverage. Steven advises that the insurance contract will cost $1,000 for the voyage and given the high risk of piracy off the coast of Sydney, to ensure against piracy there will be a premium of $200.
Sarah, says that they will pay the premium.
Steven does not issue any written contract.
Pirates board the ship off Mosman and steal the diamonds.
Advise
Sue-Lin is there a contract of Marine Insurance in place give your reasons.
Yes, Sue-Lin, there appears to be a contract of marine insurance in place for your large shipping company's shipment of argyle diamonds.
The contract was formed when Sarah contacted Marine Insurance Co. Pty Ltd and discussed the proposed coverage with Steven. Steven provided the terms of the insurance, including the cost of $1,000 for the voyage and an additional $200 premium for piracy coverage, which Sarah agreed to pay. Although Steven did not issue any written contract, the agreement between Sarah and Steven through their phone conversation likely constitutes a valid oral contract.
However, it is important to note that the absence of a written contract may cause complications in enforcing the insurance coverage if a dispute arises.
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which table best represents what is likely to happen to the demand for andrei's tea if other russian immigrants also open tea rooms in minneapolis?
Without a particular table or information set to work with, I can offer a few common directions on what might happen to the request for Andrei's tea in case other Russian foreigners too open tea rooms in Minneapolis.
It's conceivable that expanded competition from other Russian tea rooms seems to lead to a diminish in a request for Andrei's tea, as clients have more choices to select from. On the other hand, it's moreover conceivable that the nearness of other Russian tea rooms seems to offer assistance.
The particular table that would best speak to the effect of this situation would depend on the accessible information and the particular components at play, such as the number and area of competing tea rooms, changes in promoting and promoting methodologies, and client inclinations and behavior.
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models of strategic collaboration include all of the following except: group of answer choices lean experimentation. crowd-based collaborations. strategic investments. strategic partnerships.
Lean experimentation is not a model of strategic collaboration, while crowd-based collaborations, strategic investments, and strategic partnerships are valid models.
What are the types of strategic collaborationTo clarify, strategic collaboration is a process where multiple parties work together to achieve shared objectives.
These collaborations can take various forms, including:
1. Lean experimentation: This is NOT a model of strategic collaboration. Lean experimentation refers to a rapid, iterative approach to testing and refining business ideas, often used in startups or new ventures.
2. Crowd-based collaborations: This is a model of strategic collaboration that leverages the collective intelligence and resources of large groups of individuals, often through digital platforms, to achieve a specific goal.
3. Strategic investments: In this model of strategic collaboration, one organization invests in another to gain access to resources, capabilities, or market opportunities. These investments can be in the form of equity, joint ventures, or other financial arrangements.
4. Strategic partnerships: This model involves formal agreements between two or more organizations to work together towards a common goal, typically by sharing resources, knowledge, and expertise.
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Ellie is 30 years old and just started working for Microsoft. She is paid on the 1st of each month. Upon receipt of her gross monthly salary of $9,000, she immediately contributes $1,000 to the Group Registered Retirement Savings Plan (RRSP) where at the same time, the company matches her contribution. She guesses that she could earn 6% interest compounded weekly over this period. a) If she continues to do so for the next 35 years, how much will she have accumulated in her RRSP for her retirement? (1 mark) Calculate the amount that Ellie will receive: (1 mark) Page 6 of 9 b) For group insurance, Microsoft pays for Long Term Disability (LTD) insurance but requires Ellie to pay for Short Term Disability (STD) Insurance. STD and LTD plans vary per employer. Most STD plans cover 75% of gross salary for sixteen weeks, and then 65% of gross salary potentially to age 65 for LTD, which is also how Microsoft's group insurance pays out. Explain to Ellie the benefits of disability insurance. (.5 marks) c) Ellie was out of work on Short Term Disability leave for one month while she recovered from COVID. How much did Ellie receive from Microsoft during this one month while on leave? (.5 marks) Calculate the amount that Ellie will receive: (.5 marks)
a) Ellie contributes $1,000 per month to her Group RRSP, and the company matches her contribution.
Therefore, her total monthly contribution to the RRSP is $2,000. Assuming that Ellie continues to do so for the next 35 years, with an interest rate of 6% compounded weekly, we can calculate the future value of her RRSP using the formula for compound interest:
[tex]FV = PV x (1 + r/n)^(n×t)[/tex]
where PV is the present value (the amount contributed each month), r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
In this case, PV = $2,000, r = 6%/52 (since the interest is compounded weekly), n = 52 (since there are 52 weeks in a year), and t = 35. Plugging in these values, we get:
[tex]FV = $2,000 x (1 + 0.06/52)^(52×35) = $2,000 x 181.90 = $363,802.36[/tex]
Therefore, after 35 years of contributing $1,000 per month to her Group RRSP and receiving a matching contribution from Microsoft, Ellie will have accumulated $363,802.36 in her RRSP for her retirement.
b) Disability insurance provides financial protection to employees who are unable to work due to illness or injury. In Ellie's case, Microsoft pays for Long Term Disability (LTD) insurance, which can provide her with 65% of her gross salary potentially until she reaches age 65 if she is unable to work due to a disability.
Ellie is required to pay for Short Term Disability (STD) insurance, which can provide her with 75% of her gross salary for up to sixteen weeks if she is unable to work due to a disability.
The benefits of disability insurance are that it can provide financial security to employees who are unable to work due to illness or injury. Without disability insurance, an employee may have to rely on their savings or other sources of income if they are unable to work.
Disability insurance can help cover the costs of living expenses and medical bills, and it can also provide peace of mind knowing that there is a financial safety net in case of a disability.
c) If Ellie was out of work on Short Term Disability leave for one month while she recovered from COVID, she would receive 75% of her gross salary for that month from Microsoft's STD insurance plan. Since Ellie's gross salary is $9,000 per month, her STD benefit for one month would be:
STD benefit = 75% x $9,000 = $6,750
Therefore, Ellie would receive $6,750 from Microsoft's STD insurance plan for the one month that she was out of work on Short Term Disability leave.
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These two things are at the core of the balanced Scorecard. Organizational culture and vision Business performance and competitive advantage Organizational vision and strategy
The two things that are at the core of the balanced Scorecard are Organizational vision and strategy.
The balanced scorecard entails measuring 4 major factors of a commercial enterprise: Learning and growth, commercial enterprise processes, customers, and finance. BSCs permit groups to pool records in a unmarried report, to offer records into provider and first-class further to economic performance, and to assist enhance efficiencies. The capabilities of the Balanced Scorecard: Clarify and speak commercial enterprise priorities and targets to the complete organization. Define and control motion plans to make certain that there are sports and packages with the intention to supply the strategic targets. Monitor and degree development on strategic targets.
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The two things that are at the core of the balanced Scorecard are organizational culture and vision, and business performance and competitive advantage.
Organizational culture refers to the shared values, beliefs, behaviors, and attitudes that shape how people work together and interact within an organization. A strong organizational culture can help to drive employee engagement, productivity, and retention, which are all critical factors for achieving long-term success. On the other hand, an unhealthy or toxic culture can have a detrimental effect on employee morale, performance, and overall business outcomes.
Vision is also a critical component of the balanced Scorecard, as it provides a clear and compelling direction for the organization to follow. A well-defined vision can help to align employees and stakeholders around a common purpose and inspire them to work towards a shared goal. In addition, it can help to drive innovation and creativity by encouraging employees to think outside the box and pursue new ideas and opportunities.
In summary, a strong organizational culture and vision are essential for driving business performance and competitive advantage. By focusing on these core components, organizations can build a foundation for long-term success and achieve their strategic objectives.
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Question 5 of 15 A payment of $2,250 is due in 2 years and $3,300 is due in 4 years. These two original payments are to be rescheduled with a payment of $1,950 in 1 year and the balance in 3 years. Calculate the payment required in 3 years for the rescheduled option. Assume that money earns 3.5% compounded monthly. $0.00 X Round to the nearest cent
The payment required in 3 years for the rescheduled option is approximately $3,378.09.To calculate the payment required in 3 years for the rescheduled option, we need to find the present value (PV) of the original payments and the rescheduled payment of $1,950 in 1 year.
Then, we can determine the balance in 3 years by calculating the future value (FV) of the difference between the PVs. We will assume a 3.5% annual interest rate compounded monthly.
Step 1: Convert the annual interest rate to a monthly rate and the years to months:
Monthly interest rate: (1 + 0.035)[tex]{(1/12)}[/tex]- 1 ≈ 0.002867
2 years = 24 months
4 years = 48 months
1 year = 12 months
3 years = 36 months
Step 2: Calculate the PV of the original payments:
PV_2years = $2,250 / (1 + 0.002867)²⁴ = $2,079.87
PV_4years = $3,300 / (1 + 0.002867)⁴⁸ = $2,891.74
Total PV_original = $2,079.87 + $2,891.74 = $4,971.61
Step 3: Calculate the PV of the rescheduled payment in 1 year:
PV_1year = $1,950 / (1 + 0.002867)¹²= $1,897.60
Step 4: Calculate the difference between the original and rescheduled PVs and find the FV in 3 years:
Difference = $4,971.61 - $1,897.60 ≈ $3,074.01
FV_3years = $3,074.01 * (1 + 0.002867)³⁶ = $3,378.09. Therefore, the payment required for the rescheduled option is approximately $3,378.09.
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The payment required in 3 years for the rescheduled option is $1,704.24.
To solve this problem, we can use the concept of present value and future value of money. The present value (PV) of a future payment is the amount of money that needs to be invested now at a given interest rate to grow to the future payment amount. The future value (FV) of a present payment is the amount of money that a payment will grow to at a given interest rate over a given period of time.
First, let's find the present value of the original payments of $2,250 due in 2 years and $3,300 due in 4 years, using the formula:
[tex]PV = \frac{FV}{(1+r)^n}[/tex]
where PV is the present value, FV is the future value, r is the interest rate, and n is the number of years.
For the payment of $2,250 due in 2 years:
[tex]PV = \frac{2,250}{\left(1 + \frac{0.035}{12}\right)^{2 \times 12}}[/tex] = $1,975.47
For the payment of $3,300 due in 4 years:
[tex]PV = \frac{3,300}{\left(1 + \frac{0.035}{12}\right)^{4 \times 12}}[/tex] = $2,692.33
Next, let's calculate the future value of the payment of $1,950 due in 1 year, which will be paid first before the balance is due in 3 years:
[tex]FV = 1,950 \times \left(1 + \frac{0.035}{12}\right)^{1 \times 12}[/tex] = $2,040.17
Now, we can use the formula for the present value of an annuity to find the present value of the remaining balance that will be paid in 3 years, given that the payment of $1,950 has already been made:
[tex]PV = P \times \frac{1 - (1+r)^{-n}}{r}[/tex]
where P is the payment, r is the interest rate, and n is the number of years.
We want to solve for P, so we can rearrange the formula to:
[tex]P = \frac{PV}{\frac{1 - (1+r)^{-n}}{r}}[/tex]
Substituting the values, we get:
[tex]PV &= \frac{2,692.33 + P}{(1 + \frac{0.035}{12})^{312}}[/tex]
[tex]PV &= \frac{2,040.17}{(1 + \frac{0.035}{12})^{212}}[/tex]
Solving for P, we get:
[tex]P &= PV \cdot \frac{1 - (1 + r)^{-n}}{r}[/tex]
[tex]P &= \frac{2,040.17 - 1,988.36}{\frac{1 - (1 + \frac{0.035}{12})^{-3\cdot12}}{\frac{0.035}{12}}}[/tex]
P = $1,704.24
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The Albertson’s Corporation is considering the purchase of a new technology to help expand its current sales of oil-pipe fringes. The cost of the technology installed is $150,000,000. The company estimates that the present value as of the end of year one of all its future cash flows (including the CF1) is $282,000,000 if the project is successful and $77,000,000 if it’s not. The company assigns a 45% chance to success. The RRR (aka WACC) on the project is 15%.
a. Given the above information and based on static analysis, should the company go ahead with its investment?
b. Upon further study the company realizes that, if the project was not successful, it can stop production and sell the equipment for an after-tax salvage value of $92,000,000 (assume that includes the first year CF). Given this information, should the company go ahead with the investment?
c. What is the present value of the option to abandon?
The answers are (a) Expected PV = [tex](0.45 * $282,000,000) + (0.55 * $77,000,000) = $168,150,000[/tex] ,(b) Expected PV = [tex](0.45 * $282,000,000) + (0.55 * ($77,000,000 + $92,000,000/(1+15)^1)) = $189,350,130[/tex], and (c) Present value of option to abandon = [tex]$189,350,130 - $168,150,000 = $21,200,130.[/tex]
a. Based on static analysis, the company should invest in the project only if the expected present value of future cash flows exceeds the initial cost of the technology. The expected present value of future cash flows is calculated as the probability-weighted average of the present values of cash flows in the success and failure scenarios:Expected PV =[tex](0.45 * $282,000,000) + (0.55 * $77,000,000) = $168,150,000[/tex]Since the expected present value of cash flows is less than the cost of the technology, the company should not go ahead with the investment.b. When the option to abandon the project is included, the expected present value of cash flows changes. In the failure scenario, the company can abandon the project and sell the equipment for $92,000,000. This option to abandon the project has value since it reduces the downside risk of the project.The expected present value of cash flows with the option to abandon is calculated as follows:Expected PV = ([tex]0.45 * $282,000,000) + (0.55 * ($77,000,000 + $92,000,000/(1+15)^1)) =$189,350,130[/tex]The expected present value of cash flows with the option to abandon is greater than the cost of the technology, so the company should go ahead with the investment.c. The present value of the option to abandon is calculated as the difference between the expected present value of cash flows with the option and the expected present value of cash flows without the option:Present value of option to abandon = [tex]$189,350,130 - $168,150,000 = $21,200,130[/tex]This means that the option to abandon is worth $21,200,130 in present value terms.For more such question on abandon option
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(a) You need to make the following withdrawals from your bank account to pay for some expected expenses at the end of each of the next 4 years. Given the variable interest rate that your bank will offer in each year, how much money must you deposit in your bank account now to prepare for these withdrawals? End of year 1 2 3 4 Withdrawal ($) 5,000 6,000 7,000 8,000 Annual interest rate (%) 3 4 5 6 (b) Now you have to make the same withdrawals as specified in (a) but the interest rate in the next 4 years will remain at 5%. How much money must you deposit in your bank account now to prepare for these withdrawals?
To calculate the potential value of your savings account, you need to know the principal amount, future value interest rate, and time frame. Compound interest can be used to calculate the total. After a predetermined period of time.
you must use the compound interest calculation to determine the future value of your savings account. This computation takes into account the principal amount, the interest rate, and the period. You can use the following formula to calculate the future value if your bank offers a fixed interest rate each month and you now have a particular amount in your savings.
Your parents are need to deposit $639610.76 today. After the third withdrawal, the balance in the account is $422923.12..Future value is the amount of money invested today that will increase in value in the future at an interest rate. Future value of the deposited amount, calculated after eight years, is equal to the deposited amount multiplied by one plus four percent
Future Value at 8 years from now: $639610.76 * (1+ 4%)
Future Value at 8 years from now: $639610.76 *1.3686
Future Value: $875351.49 after 8 years
Therefore, your parents must deposit $639610.76 today.
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costco has built its successful retail chain using a cost-based pricing strategy. costco marks up products a maximum of 15% to ensure a profit but keep prices lower than competitors' prices. this works for costco because they are in a market where: select one: a. the price is set based on fixed and variable costs of production b. the price is regulated by the government c. the retail price takes customer needs into account d. differentiation is minimal and customers are price sensitive e. customers are willing to pay for different levels of product performance
Costco's success with its retail chain can be attributed to its cost-based pricing strategy, which is effective due to the market conditions where differentiation is minimal and customers are highly sensitive to price (option D).
Costco's success can be attributed to their ability to keep prices low through a cost-based pricing strategy, which is effective in markets where customers are price-sensitive and there is minimal product differentiation. By keeping their markup at a maximum of 15%, they are able to generate profits while still offering lower prices than their competitors.
This pricing strategy appeals to customers who prioritize value and are willing to forgo additional features or services in exchange for lower prices. Additionally, by maintaining a limited selection of products and focusing on bulk sales, Costco is able to reduce costs and offer even lower prices to customers. This pricing strategy has helped Costco establish itself as a major player in the retail industry.
Option D holds true.
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jasmine tells jonathan she will groom his labrador dog and jonathan tells jasmine he will pay her $45 fee. this is an example of . group of answer choices a unilateral contract an unenforceable contract a bilateral contract an implied contract
Jasmine tells Jonathan she will groom his Labrador dog and Jonathan tells jasmine he will pay her $45 fee. this is an example of a bilateral contract.
In a bilateral contract, both parties make promises to each other, and both are bound to fulfill those promises for the contract to be considered complete.
In this case, Jasmine promised to groom Jonathan's dog, while Jonathan promised to pay Jasmine a fee of $45 for the service. Both parties have entered into an agreement and are legally obligated to perform their respective duties as per the terms of the contract.
If either party fails to fulfill their promise, the other party can take legal action to enforce the contract and seek damages. A bilateral contract requires mutual agreement, consideration, and legal capacity from both parties.
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